LPL 4802 ASSIGNMENT 5 Final
Jacques Michael le Roux
56066481
LPL 4802 – Law of Damages
Unique number: 555192
Contents
Introduction
Contractual Agreements
Breach of Contract
General Principles Concerning Claims for Contractual Damages
Who can Claim and Quantification
Where Alberton Motors decide to uphold the contract
Where Alberton Motors decide to cancel the contract and the date for performance is set
Conclusion
1.
1. Introduction
Parties are bound to a contract to honour their agreement and fulfil all the stipulated obligations of the contract in question. This is called the principle of pacta sunt servanda.1 If either of the parties, due to an omission or commission, without a legal excuse, fail to live up to their contractual obligation they are liable for breach of contract. In the modern concept of our law breach of contract is divided into different categories in accordance with the behaviour of the contractual parties. These forms are mora debitoris, mora creditoris, positive malperformance, repudiation and the prevention of performance.2 Bear in mind that these forms of breach can overlap and the innocent party will be entitled to any remedy in accordance to the specific form of breach.3 Thus the distinction is crucial. “These remedies are aimed at performance or fulfilment of contractual obligations, or at cancellation and withdrawal from a contract, or at damages for loss causes by any form of the above mentioned breaches.”4 Thus an award of damages due to the failure of the debtor’s actions is aimed at a monetary amount that plays a role in the creditor’s patrimony.5
2. Contractual Agreements
In accordance with the scenario in question, different contractual agreements were established. The first agreement was between Alberton Motors and Easy Car Dealers concluded in Polokwane on 28 December 2013 to purchase a gold Mercedes Benz 2012-model for R820 000. “In terms of the agreement Alberton Motors would pay the purchase price before date of delivery and it
56066481
LPL 4802 – Law of Damages
Unique number: 555192
Contents
Introduction
Contractual Agreements
Breach of Contract
General Principles Concerning Claims for Contractual Damages
Who can Claim and Quantification
Where Alberton Motors decide to uphold the contract
Where Alberton Motors decide to cancel the contract and the date for performance is set
Conclusion
1.
1. Introduction
Parties are bound to a contract to honour their agreement and fulfil all the stipulated obligations of the contract in question. This is called the principle of pacta sunt servanda.1 If either of the parties, due to an omission or commission, without a legal excuse, fail to live up to their contractual obligation they are liable for breach of contract. In the modern concept of our law breach of contract is divided into different categories in accordance with the behaviour of the contractual parties. These forms are mora debitoris, mora creditoris, positive malperformance, repudiation and the prevention of performance.2 Bear in mind that these forms of breach can overlap and the innocent party will be entitled to any remedy in accordance to the specific form of breach.3 Thus the distinction is crucial. “These remedies are aimed at performance or fulfilment of contractual obligations, or at cancellation and withdrawal from a contract, or at damages for loss causes by any form of the above mentioned breaches.”4 Thus an award of damages due to the failure of the debtor’s actions is aimed at a monetary amount that plays a role in the creditor’s patrimony.5
2. Contractual Agreements
In accordance with the scenario in question, different contractual agreements were established. The first agreement was between Alberton Motors and Easy Car Dealers concluded in Polokwane on 28 December 2013 to purchase a gold Mercedes Benz 2012-model for R820 000. “In terms of the agreement Alberton Motors would pay the purchase price before date of delivery and it